Starting May 30, FTX creditors will receive over $5B

The FTX Recovery Trust has announced that it will distribute more than $5 billion to creditors starting May 30.

The payment round marks a second allocation for eligible parties as the company continues to work to repay those affected by the collapse.

Repayment work

In a May 15 release, the company’s bankrupt real estate classified creditors into five “convenience columns” with a specified payment rate. Creditors Class 5A members will receive 72% of the distribution, while Class 5B members will receive 54% of the compensation.

Levels 6A and 6B, composed of small lenders and Alameda research trading partners, were allocated 61% respectively. Finally, 7 Classes of convenience claims will receive 120%.

John J. Ray III described the upcoming payment as a major development, noting:

“The distribution of these first non-contingent categories is an important milestone for FTX. The scope and amplitude of the FTX creditor base make this an unprecedented distribution process.”

He added that the announcement showed strong outcomes of team rehabilitation and coordination efforts and stressed that their focus was on maximizing creditor returns and resolving unresolved claims.

Qualified creditors are expected to receive their funds through their selected distribution service provider Bitgo or Kraken within one to three business days after May 30. However, customers who board with distribution service providers will lose their right to get cash directly from bankruptcy exchanges rather than all funds sent through providers of their choice.

The FTX Recovery Trust also said that the repayment schedule for the upcoming creditors course will be announced in due course. If all claims are filed, the total repayment can reach $16.5 billion.

In addition, FTX Bankruptcy Legacy filed a legal lawsuit against NFT Stars Limited and Delysium in April. The lawsuits aim to recover digital assets allegedly withheld from the estate and are part of the company’s efforts to restore funds and the largest recovery after the company’s November 2022 collapse.

Criticism of the Assessment Method

FTX has now allocated approximately $11.4 billion for creditor repayment. The first round of reimbursement began on February 18, 2025, with its “facilitative claims” below $50,000 for creditors. About $1.2 billion was paid at this stage.

Now, the second allocation phase will target the requirement exceeding that amount. This includes major investors and institutions that own millions of dollars in cryptocurrencies on the platform.

Despite the progress, the repayment model faces criticism that reimbursement is calculated based on crypto value when filing for bankruptcy. This has resulted in some creditors receiving less than their current market value.